The recent U.S. indictment of Wegelin Bank of Switzerland highlights the terrible consequences of the offshore tax enforcement program.
Congress has set in motion an attempt to expand a country’s control over the world.
The expansion attempt isn’t by armies enforcing the collection of taxes from conquered nations but by using the U.S tax system and the world’s dependency on the dollar to conquer nations.
The United States has both a desire to encourage foreign investors to keep investing in the U.S. while it wants to collect tax due under its world-wide income tax system.
The U.S. is the biggest tax haven in the world and needs foreign investment for its economy to survive. Consequently, the U.S. income tax system makes it possible for foreign investors to invest in the U.S. without paying U.S. tax.
On the other hand, the U.S, abhors the idea of U.S. persons holding investments offshore the U.S. without paying tax back to the U.S.
The Wegelin Bank case shows how the United States is failing in both encouraging the continuation of foreign investment and effectively enforcing U.S. tax world-wide.
This result shouldn’t be surprising. In fact, it should be expected.
According to the overwhelming amount of proposed legislation introduced by Congress to revoke the income tax system first enacted in 1913, and to revoke the 16th Amendment, the income tax system is an utter failure and destructive to the U.S. economy. At least that’s what an awful lot of people in Congress and elsewhere say.
Present conditions in the United States are not as controversial.
The value of the dollar is dropping, the United States is hit by uncertainty in every sector, its political leadership is effectively non-existent, its foreign policy—well, there is no discernible foreign policy. And the U.S. is insolvent.
In spite of all this and more, Congress insists that the U.S. income tax system bring under its control virtually every possible foreign institution that provides a pathway for investment in the United States.
The investments markets, in fact, already reflect extreme volatility because of this even though Washington, D.C., Wall Street (in the broadest sense) and those in the media are in utter denial or worse.
Then along comes Wegelin Bank, which puts it all in perspective and takes the actions that it finds necessary.
In 2009, Wegelin Bank, Switzerland’s oldest and one of the most prestigious banks, said “Farewell America” in an extraordinary eight-page letter to its clients.
The letter sums it up by saying, “Which is why we are well advised to take a general farewell of America. This will be painful, for the USA was once the most vital market economy of the world. But for now, it’s time to say goodbye.”
Are these the words of a criminal fugitive from U.S. justice? Or are these the words of an incredibly rational banker telling the world why a country that was the envy of the world has completely lost its rationality and its rationale?
It is up to you to determine whether this will impact you and your own financial security or not.
Clearly, the reality of the Wegelin Bank case is that the actions being taken by the U.S. government is forcing foreign investors out of the U.S. market.
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